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Notes to the Consolidated Financial Statements of the Enav Group 81

Identification of related parties

Based on its assessment to identify related parties, management believes
that the other entities controlled by the Ministry of Economy and Finance
are not related parties as defined by IAS 24.

Estimates and assumptions

Set out below are the key assumptions regarding the future and other
important causes of uncertainty in estimates, which at the balance sheet
date present a considerable risk of giving rise to significant adjustments to
the carrying amounts of assets and liabilities by the end of the following
year. The Group has based its estimates and assumptions on data and
information available at the date of preparation of the consolidated
financial statements. Current circumstances and assumptions about future
development could, however, vary due to changes in the market or events
outside the Group’s control. These changes, if they occur, are reflected in
the assumptions.

Impairment of assets

An asset or cash-generating unit (CGU) is impaired when its carrying
amount exceeds its recoverable amount. At each reporting date, or when
circumstances or events require more frequent testing, the Group carries out
an assessment for all non-financial assets to determine whether there is any
indication of impairment.

Goodwill and other intangible assets with indefinite useful lives are tested
for impairment annually and also during the year if there is any indication of
impairment. Other non-financial assets are tested for impairment annually,
when there are indications that their carrying amount might not be recovered.
In the absence of active markets where fair value may be identified, the Group
carries out this testing by determining the value in use of a CGU using the
discounted cash flow method. When preparing the value in use calculations
the directors have to estimate the expected cash flows of the CGU and
identify a suitable discount rate in order to calculate the present value of
those flows. The discounted flows used for the following five years are taken
from the business plans approved by management, which are drawn up on
the basis of assumptions that to a large extent are theoretical.

At each balance sheet date the Group assesses whether there is any
indication that intangible assets with a finite useful life or property, plant
and equipment may be impaired. Impairment testing is carried out if such
indicators exist.

The recoverable amount of an asset or cash-generating unit is the higher of
its fair value less costs to sell and its value in use, calculated by individual
asset, unless the asset generates cash flows that are not largely independent